OCR (Optical Character Recognition)

What is OCR?

OCR (Optical Character Recognition) is a technology used to "read" text from image files or PDF documents. In the context of invoicing, OCR is used to scan PDF invoices and attempt to identify specific data points such as amounts, dates, and tax IDs. While the technology has improved with AI, it is now considered a transitional technology that is less secure and less efficient than true e-invoicing.

How it works

An OCR engine analyzes the image of an invoice and looks for patterns that resemble numbers and letters. Because the system essentially "guesses" what is written, errors frequently occur—for example, an "8" being misread as a "B," or a decimal point being misplaced. These errors require manual verification by a bookkeeper, making the process slower and prone to risk.

Why avoid OCR?

The goal of modern financial management is to move from OCR to structured data (true e-invoicing). With true e-invoicing, data is sent as pure code where there is no room for interpretation. The system knows exactly which field is the VAT and which is the invoice number with 100% accuracy. OCR should therefore only be used as a last resort for the few suppliers who cannot yet send electronic invoices.

From scanning to direct data

At Inexchange, we minimize the need for OCR. By converting your suppliers to send true e-invoices, we eliminate the errors and time consumption associated with traditional scanning. This results in cleaner bookkeeping and fewer manual corrections.